CSX: Election results too close to call

Hedge funds seeking to shake up CSX Corp. said they had secured four seats on the railroad's 12-person board of directors, while CSX management said the outcome of the election was too close to call at this time.

CSX said Wednesday's annual meeting will reconvene at 10 a.m. Friday at the company's headquarters in Jacksonville, Fla., to receive certification of the voting results to allow the independent inspector of elections time to tabulate the voting results.

Citing preliminary returns, The Children's Investment Fund and 3G Capital Partners said in a press release that they had gotten at least four seats on the board. They include Christopher Hohn, managing director of TCI, and Alexandre Behring, who runs 3G, as well as Gil Lamphere, former director of Canadian National, and Tim O'Toole, managing director of London Underground. They did not comment on a fifth dissident candidate, Gary Wilson, who is also a director at Yahoo.

This is a victory for all CSX shareholders, said TCI and 3G in their statement. We look forward to working constructively with the board, management and employees of CSX to realize the company's full potential.

CSX said its management had a proven plan to continue creating shareholder value and that the dissidents had admitted they had no detailed operating plan and only offered unsubstantiated criticisms, misleading analyses, distortions of the truth and unlawful behavior including false testimony under oath during the proxy fight.

Source: American Shipper